Okta to Buy Security Software Maker Auth0 for $6.5 Billion
Summary
(Bloomberg) -- Okta Inc., a maker of identity-verification software, agreed to buy smaller rival Auth0 for about $6.5 billion in stock, seeking to solidify its position in the growing market for digital authentication security services. Customers use San Francisco-based Okta’s security software to support workers who need to access corporate systems, students who must use remote-learning apps and consumers who are required to authenticate their identities online. Okta, which counts Microsoft Corp. as one of its main rivals, saw shares more than double last year as the pandemic-related shift to home-based working and learning boosted the need for users to securely get in to apps and networks. From March through July, Okta’s main product, called Identity Cloud, was used almost 16 billion times to access an app or website. Okta shares dropped about 11% in extended trading Wednesday following the deal news and the company’s earnings report.
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